• Wed. Sep 21st, 2022

How this insurtech startup, Bimaplan, is driving insurance adoption in India

ByElla E. Kidwell

Aug 3, 2022

The insurance industry in India, which has a population of over 140 crores, is still in its infancy. Despite its growing population, its insurance market represents only 1.5% of the world total.

Over 70% of its population resides in rural areas, making it difficult for conventional insurers to tap into the market. As a result, the majority of people are still unaware of the use of insurance coverage as risk management throughout their lives. To boost the penetration of financial insurance in both urban and rural markets, a plethora of insurtech startups are trying to innovate solutions that can provide financial security to the people of India.

After experiencing the negative impact of the COVID-19 pandemic, building the financial capacity of the underserved has become extremely crucial. Unforeseen events that can push a family into the poverty trap require insuring vulnerable households with low household savings and insufficient social security. To increase the reach of insurance in every household, Bimaplan has taken the initiative to provide insurance coverage to the currently underserved population at affordable prices.

Commenting on the use of technology, Vikul Goyal, The founder and CEO of Bimaplan said: “Insurance penetration is an easy-to-access, easy-to-use process. Even though technology has disrupted the traditional value chain, segments such as healthcare, crop protection, consumer durables, etc. are still underutilized. By leveraging the use of technology, the insurance industry can customize products to meet the dynamic needs of customers based on different demographics and individual behaviors. »

The business idea

The technology-driven insurance platform offers personalized, highly affordable and relevant insurance plans for rural and low-income people. It helps insurance companies adopt agile business and distribution models through its API-based platform to capitalize on new distribution and revenue streams. Its end-to-end API-based insurance solution digitizes conventional insurance distribution while helping companies issue policies and transfer premiums faster than conventional channels. Bimaplan’s integrated insurance platform, UNO, simplifies integration and helps our partners launch insurance products for their customers.

The insurance platform successfully develops personalized insurance products and makes them accessible to all geographies and segments. It works with insurance companies and integrates API to make product accessibility seamless through customers’ smartphones. Dynamic API connections have the potential to offer a much greater degree of customization to customers with a fast turnaround time.

Technology as a key enabler

To improve insurance penetration in India, it is important to maintain technology penetration ahead of insurance penetration. Bimaplan integrates technology to analyze customer behavior and preferences and offer products tailored to their needs. Furthermore, the adoption of digital models also improves the accessibility of insurance products for people belonging to different income groups.

Professional career so far

Bimaplan has a strong founding team with a successful track record of building scalable products. It is backed by world-renowned early-stage tech investors including Y-Combinator, global venture capital funds, and prolific angel investors. Launched in 2020, the insurtech startup secured $500,000 in seed funding in March 2021 and has raised a total of $3 million to date.

Bimaplan co-creates relevant plans with insurance companies for end consumers. It partners with B2B partners such as NBFCs, MFIs, fintechs, gig platforms, SMEs and digital startups to deliver relevant products to the end customer.

In a short time, the insurtech startup has introduced a wide range of innovative products. Recently, it has also partnered with intercity travel startup, Zingbus, to offer real-time travel insurance as an add-on benefit to its users.